Bitcoin treasury narrative gets ‘annihilated’ for firm as stocks collapse over 96%

Core Insights - Nakamoto Holdings, after merging with KindlyMD, experienced a dramatic stock collapse of over 50% following the unlocking of PIPE shares, with shares down 96% from their peak in May, now trading at $1.50 [1][2] - The incident marks a significant downturn in the Bitcoin treasury trend, with one in three companies in the sector trading below the value of their Bitcoin holdings [2][3] - The PIPE unlock allowed insiders to sell shares they purchased at $1.12, which had previously surged to about $34, leading to a chaotic sell-off [4] Company Specifics - Nakamoto Holdings' merger with KindlyMD was announced on May 12 but completed in mid-August, with the company purchasing its first Bitcoin only in late August [6] - Despite the timing, Nakamoto's stock surged as much as 2,700% based on speculative expectations rather than actual Bitcoin holdings [6] - KindlyMD acquired 5,765 Bitcoin valued at approximately $665 million, making it the 16th largest corporate Bitcoin holder [6] Industry Trends - The collapse of Nakamoto Holdings highlights the volatility and risks associated with the corporate Bitcoin treasury model, as many firms are now facing significant declines in stock value [2][3] - The trend of corporations adding Bitcoin to their balance sheets is growing, with some companies attempting to frame it as a viable business model [7]